{"id":102233,"date":"2026-10-05T06:00:52","date_gmt":"2026-10-04T20:30:52","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=102233"},"modified":"2026-10-05T06:52:00","modified_gmt":"2026-10-04T21:22:00","slug":"the-art-of-the-phoenix","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/the-art-of-the-phoenix\/","title":{"rendered":"The Art of the Phoenix"},"content":{"rendered":"

\"\"<\/p>\n

There\u2019s a business model in the solar industry I\u2019d love to see burn to the ground. Trouble is, fire is how it survives.<\/p>\n

It\u2019s called phoenixing. A shonky company racks up debts, dies owing everyone, then pops up a week later with the same team, the same phone number and a slightly different name. Like the mythical bird, it rises from its own ashes. Unlike the bird, it sets everyone else on fire first.<\/p>\n

If you\u2019re buying solar or a battery, you need to know how to spot these grubs, because when a phoenix rises, your warranty stays in the ashes. It takes five minutes and a free government website.<\/p>\n

Phoenixing explained<\/h2>\n

A company is its own legal \u201cperson\u201d. When it goes broke, its debts die with it, and the directors keep their houses. That\u2019s limited liability (the ‘Ltd’ in Pty Ltd), and it\u2019s the reason anyone dares to start a business.<\/p>\n

Phoenix operators abuse it on purpose. They run up bills with suppliers, subbies and the tax office, shovel anything worth having (the brand, the website, the phone number, the customer list) into a fresh company for peanuts, then liquidate the old one with an empty bank account. Monday morning, business as usual.<\/p>\n

Why solar cowboys love it<\/h2>\n

Solar is phoenix heaven. Anyone can start a solar retailer with a few hundred bucks in ASIC fees, some bought leads from a dodgy lead-seller and subbies. The customer pays up front. The wholesaler and the subbies wait 30 days or more.<\/p>\n

The wholesaler who supplied the panels pays for it1<\/a><\/sup>, so does the two-man install crew still chasing 15 invoices, and so does the ATO, which means you and me. A 2018 PwC report put the cost of phoenixing at up to $5.13 billion a year<\/a>, most of it unpaid bills to other businesses.<\/p>\n

And then there\u2019s you. Your workmanship warranty was a promise from a company that no longer exists, and the new outfit with the same logo owes you nothing. Your panel and inverter warranties survive, but good luck finding a decent installer keen to adopt someone else\u2019s dodgy job. The Australian Consumer Law right to compensation I wrote about recently<\/a> is worth what\u2019s left in the company\u2019s bank account. Nothing.<\/p>\n

How they get away with it<\/h2>\n

Phoenixing is illegal, and laws passed in 2020 tightened the screws. But they usually get away with it anyway, for some depressingly simple reasons:<\/p>\n